Nike Cuts Contract With Lance Armstrong

Nike flinches in the face of doping allegations.

In just three short sentences, Nike (NYSE:NKE) announced today that it has severed ties with world-renowned cyclist Lance Armstrong.

"Due to the seemingly insurmountable evidence that Lance Armstrong participated in doping and misled Nike for more than a decade, it is with great sadness that we have terminated our contract with him," reads the first sentence. "Nike does not condone the use of illegal performance enhancing drugs in any manner," says the second.

The third sentence in the press release says the company plans to continue to support the initiatives of Armstrong's nonprofit cancer organization, Livestrong, from which Armstrong today stepped down as chairman.

"I have had the great honor of serving as this foundation’s chairman for the last five years and its mission and success are my top priorities," said Armstrong in a press release. "Today therefore, to spare the foundation any negative effects as a result of controversy surrounding my cycling career, I will conclude my chairmanship."

Today's Nike news comes less than a week after Nike issued a statement supporting Armstrong.